Why should we sue the local government affairs center for owing benefits to small loan companies?

For many overdue cardholders, they are still afraid of so-called court prosecution and alarm collection. It is precisely because of this that they are used by many collections, and they also like to "intimidate" cardholders with lies of prosecution and alarm. I have worked with lawyers in the legal profession for some time before, and I am familiar with the process and implementation of the court. Under normal circumstances, banks will not easily take everyone to court for several reasons.

First, it costs a lot of money to go to court.

Don't think it's easy to bring a lawsuit to court. In fact, it takes a lot of cost to bring a client to court, including attorney's fees, legal fees, property preservation guarantee fees and so on. These are all paid in advance by the bank. If the debtor still has no money to pay back after winning the case, it is necessary to thank the last one (2.5% of the legal fees below 654.38+ 10,000). The court's resources are also limited. Generally, the number of cases given to each bank is limited, and many banks have no cases for half a year. So it was used up in the first half of the year, and it was gone in the second half.

Second, after the client is sued to the court, it needs to be handled according to the formal process, but some debtors who really have no money can't recover it through formal channels. For example, for some customers who have never paid back and are overdue for a long time, it is simply not feasible to collect money through formal means. After all, for these overdue customers, many people are unable to pay back the money and are not afraid to wear shoes barefoot. If it is handled according to the formal procedures of the court, then the worst result is nothing more than being included in the list of untrustworthy people, and then you can't take the high-speed train or fly. These have little effect on them.

If there is no court to sue customers for bank loans, then they can collect them themselves and have more room for operation in the process of collecting them themselves. For example, some bank online loan companies will entrust the collection work to third-party collection agencies, and many of these third-party collection agencies will adopt some special means and relationships in the collection process. The so-called interests have rivers and lakes, and of course there will be two brushes if you can survive.

Third, some banks and online lending companies are not compliant with their own lending, and the debtors are brought to court for demand. At present, there are many financial institutions in China, including banks, various small loan companies, online credit, private finance and so on. In addition to the reasonable interest rates of formal financial institutions such as banks, the interest rates of many financial institutions can actually be judged as usury, and some installment interest rates of actual banks are also more than 24% annualized.

According to the latest laws and regulations in China, as long as the annualized interest rate exceeds four times that of one-year LPR loans, online loans are not protected by law. At present, the annualized interest rate of one-year LPR does not exceed 15.4%, which is not protected by law. In fact, at present, the annualized interest rate of many online lending companies may exceed 15.4%, especially the monthly interest rate of microfinance companies is above 2%, and the annualized rate may reach above 48%, which is far beyond the scope of legal protection.